UnitedHealth Group’s profits topped $5 billion in the second quarter on strong performance from its Optum health services and UnitedHealthcare health insurance plans.
UnitedHealth said net income rose to $5.2 billion from $4.27 billion in the second quarter of 2021, the healthcare giant’s diversified portfolio of health insurance plans and its medical services Optum with a solid performance. Revenue rose 13% to $80.3 billion in the quarter from $71.3 billion a year ago.
Friday’s earnings report signaled robust performance for the remainder of the year as UnitedHealth management moved to raise its 2022 earnings forecast.
“Based on first-half performance and growth expectations, the company raised its full-year net earnings outlook to $20.45 to $20.95 per share and adjusted net earnings to $21.40. $ to $21.90 per share,” the company said. “Growth in the second quarter was balanced across all of the company’s businesses, including continued strong expansion in the number of people served at UnitedHealthcare and value-based agreements at Optum Health.”
UnitedHealth’s UnitedHealthcare health insurance business has grown in everything from commercial insurance to government-sponsored insurance, such as the increasingly popular Medicare Advantage plans, which contract with the federal government to provide additional benefits and services to seniors, such as disease management and nurse helplines with some also offering vision, dental and wellness programs.
“The total number of people served by UnitedHealthcare grew by more than 600,000 in 2022, including 280,000 in the second quarter,” the company said. “Growth was driven by UnitedHealthcare’s community and senior offerings.”
Additional health plan enrollees helped revenue for the UnitedHealthcare health insurance business rise 12% to $62.1 billion in the second quarter.
Meanwhile, Optum’s second-quarter revenue soared 18% to $45.1 billion “with double-digit growth in every business, led by Optum Health,” the company said. UnitedHealth’s Optum businesses include a range of healthcare services including surgery centers, clinics, physician practices and the pharmacy benefits management (PBM) company, OptumRx, which reported a 10% increase in revenue in second quarter to reach $24.8 billion.